Risk Management Software and KonTraG

KonTraG - A brief overview

In Germany the "Act on Control and Transparency in Enterprises"(KonTraG) was introduced as part of the responsibilities of the management. The boards of public limited companies have to ensure that an adequate risk management is established and risk to the organisation are part of reporting.

KonTraG is not very specific about risk management. What it states is that:

risk management has to be performed.
risks have to be uncovered in a way that management has sufficient time to take appropriate action.
risk management has to applied on corporate objectives to allow a prosperous development of the business.

KonTraG itself is behind modern risk management theory. However, the objective is clear: risk management shall provide an improved 'true and fair view' on the financial situation of an organisation. Next to this formal risk management requirements organisations will have to establish a modern risk management. The objective should be to collect risk in the same way as costs: enterprise-wide. In general the risk management system can follow a process approach such as the Plan - Do - Check - Act principle:

General risk management constituents and KonTraG

KonTraG and Enterprise Risk Register®

Enterprise Risk Register® is a valuable tools to improve the risk management in a cost efficient way.

Enterprise Risk Register® assists you to collect all risks identified in its risk log or risk register. It helps you to provide consistency across a project and even the entire organisation.

Enterprise Risk Register® supports qualitative risk assessments and provides the ability to record, sort and filter data by all its characteristics.

And Enterprise Risk Register® allows you to collect treatments against the risks and analyse the effect of implementing the treatments. This way it demonstrates successful risk management leading to cost reduction.